Despite just scoring an OEM deal with EMC, tape library maker Advanced Digital Information just missed Wall Street expectations for its latest fiscal quarter.
For its fiscal third quarter ended July 31 2004 ADIC is expecting to report revenue of $108m to $110m, compared to $108m last year, and $111m in the preceding second quarter. Wall Street had expected revenue of about $112m.
The problem for ADIC is likely to have been a combination of soft IT spending by large businesses in the US, competition for tape libraries from disk-based backup systems, and – ironically – the EMC deal.
Although the OEM arrangement with EMC can only boost ADIC’s revenue, it was widely rumored before it was finally announced earlier this summer, and some buyers may have delayed purchases hoping for better prices from EMC.
ADIC says it still expects full fiscal year percentage revenue growth to be in the high single digits.